To determine the net income Reggie and Bebe should report for the rental units in their apartment building, follow these steps:
1. List the Total Rental Income:
- Rental income from the remaining 7 units: [tex]$45,000.
2. List the Expenses Incurred:
- Maintenance: $[/tex]850.
- Repairs: [tex]$9,000.
- Utilities: $[/tex]7,500.
- Depreciation: [tex]$12,000.
- Advertising for available units: $[/tex]8,000.
3. Calculate the Total Expenses:
- Add up all the expenses:
[tex]\[
850 + 9000 + 7500 + 12000 + 8000 = 37,350
\][/tex]
4. Calculate the Net Income:
- Subtract the total expenses from the rental income:
[tex]\[
45,000 - 37,350 = 7,650
\][/tex]
Therefore, the amount of net income Reggie and Bebe should report for the current year for this rental is [tex]$7,650.
The correct answer is:
\[
\$[/tex] 7,650
\]
